Third party car insurance provides coverage for third party liabilities arising due to an accident involving the insured person’s vehicle. The third party car insurance covers damages to third party property/person including compensation for permanent disability and even death. However, third party car insurance does not cover own-damage expenses.
As per the Motor Vehicles Act of 1988, third party car insurance is a mandatory cover, and driving without it can lead to hefty fines. To safeguard your own vehicle, you can buy a standalone own damage cover or get all-round protection with our comprehensive car insurance policy that covers both third party liabilities as well as own damages.
When you buy a new car or if you have an existing car, you are required to buy the third party insurance cover too. Once you buy the cover, it covers your financial liabilities against third parties. If there is an accident wherein a third party, i.e., an individual other than you, suffer any financial damage, the third party cover would compensate the individual for the loss.
The coverage works in the following scenarios–
• An individual is physically injured due to the car
• An injured dies in an accident involving your car
• Your car damages a third party property
In either of these cases, you would have to inform the insurance company of the claim. The insurance company would handle your financial liability and compensate the third party for the financial loss that they might have suffered.
Your safety is our priority; we cover your treatment charges in case of injuries due to a car accident.
Caused injury to another person? We cover the medical needs for injuries sustained by a third party person.
Collided with a third party vehicle or property? We cover up to Rs 7.5 lakhs for third party property damages.
As a car owner in India, you should know the legal necessity of car insurance alongside its practicality. The Motor Vehicles Act 1988 makes it mandatory for all cars to have a valid car insurance with at least third-party coverage. Without this, you will not be able to legally drive your car on public roads in India. Individuals who don’t adhere to this law will be penalised with fines or even imprisonment if caught. In simple words, every car driver on the road must have their vehicle insured with at least third-party insurance.
There is a key reason why this mandate is in existence. You see, in case of a car accident, both you and the third party involved in the incident are susceptible to suffering bodily harm or property damage. If your car causes such third-party damages, you will be liable to pay for the resulting loss. Hence, having insurance with third-party coverage ensures the affected third party is promptly compensated for any damage/loss caused by the insured car.
Key Features | Benefits |
Premium | Starts @ ₹ 2094* |
Buying Process | Buy Third party insurance online within minutes with HDFC Ergo |
Claim Settlement | Experience quick and easy claim settlement process with dedicated team. |
Personal Accident Cover | Up to ₹15 lakhs~* |
Damages/ Losses Caused | Third Party Insurance | Comprehensive Car Insurance |
Damages to vehicle due to accidents | Excluded | Included |
Losses due theft of car | Excluded | Included |
Losses due natural disaster | Excluded | Included |
Damages to third party vehicle and property | Included | Included |
Death of a third party due to accident | Included | Included |
Personal accident cover(if opted for) | Included | Included |
IRDAI determines the third party car insurance premium. The premium rate differs as per the car’s engine cubic capacity.
Engine Capacity | TP Premium for Renewal of existing vehicle (Annual)* | TP Premium for New Vehicle(3 Years Policy) |
Less than 1,000cc | Rs. 2,094 | Rs. 6,521 |
Above 1,000cc but less than 1,500cc | Rs. 3,416 | Rs. 10,640 |
More than 1,500cc | Rs. 7,897 | Rs. 24,596 |
Here are some reasons to choose HDFC ERGO third party car insurance policy ;
• Affordable premiums starting at Rs.2094
• Quick online purchases
• Quick and easy claim settlements with the help of a dedicated team
• 9000+ cashless garages pan India
Every car owner must have a third party car insurance policy as per the Motor Vehicles Act of 1988. However, it only covers third party liabilities and does not provide coverage for its own damage. Let us see for whom third party car insurance is ideal:
• For vehicle owners whose vehicles are always parked and hardly move out.
• Third-party car insurance is ideal for very old cars, including vintage cars.
The below steps will guide you through buying third party car insurance online.
Here are following steps to file claim for third party car insurance:
Step 1: Filing FIR at the nearest police station and collect the charge sheet. In the event of property damage, you need to file an FIR and get a copy of the same along with a copy of the charge sheet filed by the police against the offender.
Step 2: Obtain the third party car insurance details of the vehicle owner.
Step 3: Take a copy of the charge sheet filed by the police against the car owner.
Step 4: File a compensation claim case in the Motor Accident Claims Tribunal. The claim has to be filed in the tribunal court of the area where the accident occurred or in the area where the claimant resides.
Here are some major benefits and drawbacks of third-party car insurance;
Advantages | Disadvantages |
It is affordable. | It costs less than a comprehensive car insurance policy but offers coverage for only third party damages. |
Financially protect the policyholder in case of death or disability of the third party and in case of damage to the third party property or vehicle. | In the event of an accident, third party cover would not protect you from the damages that occurred to your vehicle or to yourself. |
There won’t be any legal action taken against you, if you drive vehicle with third party car insurance. | If your car gets stolen or burnt due to a fire, you will not get any coverage with this cover. |
As you know, various factors affect the car insurance premium. In this case, the third party car insurance premium is fixed by the Insurance Regulatory and Development Authority of India (IRDAI). However, certain factors can influence its price, such as–
HDFC ERGO offers an online premium calculator that helps you calculate the premium for your third party car insurance policy in just one click.
So, open the calculator, provide your car's engine capacity and calculate the third party
car insurance premium you have to pay. It is as simple as that!
Documents Required to File a Third Party Claim
For a third-party car insurance claim, here are the documents you will need to submit;
1. The duly filed and signed claim form,
2. A copy of the third-party car insurance policy,
3. A copy of the FIR registered with the local police,
4. A copy of your car’s Registration Certificate (RC),
5. A copy of your driving licence (DL),
6. Photo/video evidence of the incident/damage (as applicable),
7. Copy of the at-fault party’s car insurance,
8. Additional documentation (as required).